In recent years, the refining and chemical integration projects of the four domestic private refining giants – Hengli Petrochemical, Shenghong Petrochemical, Rongsheng Petrochemical, and Hengyi Petrochemical have attracted the attention of many people in the industry. The process has been sorted out Recent project information is for your reference.
Zhejiang Petrochemical 40 million tons/year refining and chemical integration project
On the evening of August 11, Rongsheng Petrochemical (002493) released its 2020 semi-annual report. The company achieved revenue of 50.282 billion yuan in the first half of the year, a year-on-year increase of 27.32%; net profit was 3.208 billion yuan. , a year-on-year increase of 206.55%; basic earnings per share was 0.51 yuan.
Rongsheng Petrochemical’s explosive performance in the first half of the year was mainly due to the increase in profits from the refining and chemical segment. Data shows that in the first half of 2020, Rongsheng Petrochemical held 51% of Zhejiang Zhejiang Petrochemical Co., Ltd. (hereinafter referred to as “Zhejiang Petrochemical”), achieving operating income of 27.541 billion yuan and net profit of 4.489 billion yuan.
The core asset of Zhejiang Petrochemical is the “40 million tons refining and chemical integration project”. This project was clearly proposed by the State Council in 2014 as “the refining and chemical integration of petrochemical bases determined by the national plan”. Under the background of “opening projects to social capital”, it came into being to solve the problem of PX raw materials being severely restricted by foreign countries, and has also received widespread attention from the government and society.
This 100-billion-level refining project includes a total scale of 40 million tons/year of oil refining , 8 million tons/year paraxylene and 2.8 million tons/year ethylene, which will be implemented in two phases. Among them, the first phase of the project, which was officially launched in June 2017, has an investment of 90.156 billion yuan and plans to build 20 million tons/year of oil refining, 5.2 million tons/year of aromatics, and 1.4 million tons/year of ethylene.
In terms of shareholder structure, Zhejiang Petrochemical is jointly composed of Zhejiang private enterprises and Zhejiang state-owned assets. The shareholder composition ratio is: Rongsheng Petrochemical invests 51%, Juhua Group invests 20%, Tongkun Investment contributed 20% and Zhoushan Marine Comprehensive Development Investment Co., Ltd. contributed 9%.
The first phase of Zhejiang Petrochemical’s 40 million tons/year refining and chemical integration project has been put into operation since late May 2019. On December 31, 2019, the company announced that the first phase of the project has been fully commissioned and the entire process has been completed.
What does Zhejiang Petrochemical’s 40 million tons/year refining and chemical integration project mean to the controlling party Rongsheng Petrochemical? In 2018, Li Shuirongcai, chairman of Rongsheng Petrochemical, said in an interview with a reporter from Securities Times e Company: “Rongsheng Petrochemical has been doing it for so many years and for so long, but it is not as big as the Zhejiang Petrochemical project. After this project is completed, , the scale of Rongsheng Petrochemical will double, which means ‘creating another Rongsheng’.”
Zhejiang Petrochemical’s “40 million tons refining and chemical integration project” is a key link in the company’s insistence on implementing the “vertical and horizontal two-way development” strategy, and the project has obvious competitive advantages. The company reported in its semi-annual report that since the first phase of the project was completed and put into operation, the production of each device has been progressing smoothly, the operating load has steadily increased, and the benefits have been released significantly.
Based on the fact that after the first phase of Zhejiang Petrochemical’s “40 million tons refining and chemical integration project” was put into operation, the production of each device is progressing smoothly. Rongsheng Petrochemical expects that from January to September 2020 The net profit attributable to shareholders of listed companies was 5.500 billion to 6.000 billion, a year-on-year change of 197.94% to 225.03%. The average net profit growth rate of the chemical synthetic materials industry was 39.64%.
In addition, Rongsheng Petrochemical’s semi-annual report also shows that at present, the second phase of Zhejiang Petrochemical’s “40 million tons refining and chemical integration project” has entered the on-site implementation stage, and long-term equipment procurement It has been completed. The bulk material procurement framework agreement has been basically completed. Equipment and materials have begun to arrive one after another. Construction and installation have entered the peak period. It is planned to start trial operation in the fourth quarter of 2020.
Hengli Petrochemical 20 million tons refining and chemical integration project
On the evening of August 12, Hengli Petrochemical (600346) announced its 2020 semi-annual report. In the first half of the year, the company achieved operating income of 67.358 billion yuan, an increase of 59.11% over the same period last year. The net profit attributable to shareholders of the listed company was 5.517 billion yuan, which was 5.517 billion yuan. The same period last year increased by 37.20%. Both the revenue scale and profitability level for the first half of the year hit a record high in the history of listed companies.
In the first half of this year, the sudden new crown epidemic caused heavy damage to the global economy. Hengli Petrochemical was able to achieve the best performance in the same period in history under such an environment, mainly due to The synergistic effect brought about by the company’s 20 million tons/year refining and chemical integration project being fully put into operation has enhanced the company’s ability to withstand turbulence in the external environment.
Hengli Petrochemical’s 20 million tons refining and chemical integration project was fully put into operation in May 2019. The project has also become the first major project to be completed and put into operation among the country’s seven major petrochemical industry bases.
Hengli Refining and Chemical Co., Ltd. is the implementation entity of the 20 million tons refining and chemical integration project, with a total investment of 56.2 billion yuan. The project’s crude oil processing capacity is 20 million tons/year, and the nominal scale of the aromatics complex is 450 Ten thousand tons/year (based on paraxylene production). Through this project, the company has achieved the development of the entire industry chain from downstream textiles to upstream refining.
A snapshot of the Dalian Hengli Petrochemical Refining and Chemical Integration Project
With the advantage of integrating the entire industry chain, during the reporting period, in the face of sudden epidemic risks, the company’s competitive advantages were fully exerted, ensuring the refining, petrochemical and…It provides support for the upgrading of the industrial structure and further enhances the strength of my country’s refining and chemical industry, providing assistance for the high-quality development of the industry.
The implementation entity of this project is Shenghong Refining and Chemical (Lianyungang) Co., Ltd., and its parent company is Shenghong Group.
Shenghong Group is my country’s leading chemical fiber company. In the recently released list of the world’s top 500 companies, Shenghong Group successfully made the list and became another world-class petrochemical company in my country. .
In fact, in recent years, many private companies have invested in large-scale refining and chemical projects, and the scale of some projects is even comparable to the top refining and chemical projects of Three Barrel Oil.
Due to historical reasons, my country’s refining and chemical industry has been relatively closed for a long time, and the right to speak in the industry is in the hands of state-owned enterprises. In the past two years, through the liberalization of various links, private enterprises have begun to have the opportunity to enter large-scale refining and chemical projects, which has instantly contributed to the booming situation in the domestic refining and chemical industry.
Currently, there are more than ten refining and chemical projects with a capacity of over 10 million tons under construction or planned in China, with state-owned enterprises and private enterprises equally competing, especially Shenghong, Hengli, Private enterprises represented by Rongsheng and Tongkun have accelerated their entry into the industry, and a large number of integrated refining and chemical projects have been completed and put into operation in recent years.
Hengyi Petrochemical 8 million tons refining and chemical integration project
Hengyi Petrochemical Co., Ltd. (000703.SZ)’s net profit increased significantly in the first quarter, and the company’s total borrowings also increased during the same period.
On the evening of April 27, Hengyi Petrochemical announced that in the first quarter of this year, the company achieved revenue of 18.873 billion yuan, a year-on-year decrease of 14.32%; net profit was 812 million yuan, a year-on-year decrease of 14.32%. An increase of 82.88%.
Hengyi Petrochemical stated in its quarterly report that the decline in revenue in the first quarter was mainly due to the decline in crude oil prices, which led to the decline in the prices of various products in the industry chain, and the year-on-year decline in the company’s trading business volume.
The company stated in its previous performance forecast that the main reason for the increase in net profit in the first quarter was the loose supply of upstream raw materials for the company’s PTA, polyester and other products, and the company’s continued growth in market share. Product bargaining power is enhanced, which in turn promotes an increase in product gross profit margin.
PTA is one of the terminal petrochemical products of crude oil and a front-end product of chemicals such as polyester. It is widely used in various industries such as clothing, decoration, electronics, and construction.
Founder’s mid-term futures research report stated that 2012-2016 was the trough period of the PTA industry; from 2015-2018, PTA production capacity was slowly put into operation, the industry’s backward production capacity was gradually cleared, and supply and demand improved. , industry profits gradually recovered.
Last year, Hengyi Petrochemical achieved operating income of 80.027 billion yuan, a year-on-year decrease of 9.13%; and net profit of 3.202 billion yuan, a year-on-year increase of approximately 70%.
Hengyi Petrochemical said that the company’s Brunei refining and chemical project has achieved full operation and high-load production, with smooth production and sales, and has implemented a low inventory management strategy and a crude oil CIF settlement model. This effectively avoids the risk of crude oil price fluctuations and also increases the profit contribution to the company.
Hengyi Petrochemical’s Brunei refining and chemical project started construction in March 2017 and was fully operational in November 2019.
Flexible Coking Unit
This project is one of the four largest private refineries in China. one of the projects. The other three major projects are Zhejiang Petrochemical’s 40 million tons refining and chemical integration project, Shenghong Petrochemical’s 16 million tons refining and chemical integration project, and Hengli Petrochemical’s 20 million tons/year integrated project.
Hengyi Petrochemical stated in a research activity in February this year that the Brunei refining and chemical project has a production scale of 8 million tons and is currently operating at full capacity. According to the original design of the device, the load can continue to increase in the future, and it is expected to achieve an annual production capacity of 10 million tons.
In the first quarter of this year, Hengyi Petrochemical’s total borrowings increased significantly.
Hengyi Petrochemical previously announced that as of the end of last year, the company’s consolidated net assets were 29.097 billion yuan, and the loan balance was approximately 42.196 billion yuan.
As of the end of March this year, Hengyi Petrochemical’s borrowing balance was approximately 51.134 billion yuan, an increase of 21.18% from the end of last year, and the cumulative borrowing amount was approximately 1.76 times the consolidated net assets at the end of the previous year.
This means that in the first quarter of this year, Hengyi Petrochemical’s new borrowing amount reached 8.938 billion yuan, accounting for approximately 30% of its consolidated net assets at the end of the previous year.
As for the purpose of the new borrowings, Hengyi Petrochemical stated that it is mainly to increase the working capital of the Brunei refining and chemical project, to withdraw funds for the construction of Haining new materials project, and to withdraw funds related to epidemic prevention and control. Loans etc.
Among them, in order to ensure the normal production and operation of the Brunei project, Hengyi Petrochemical added a working capital loan of 1.519 billion yuan; to ensure the construction of Haining New Materials’ annual output of 1 million tons of fiber projects If necessary, new long-term loans of 2.325 billion yuan were added; with the help of loan policies related to epidemic prevention and control, new working capital loans were added by 2.233 billion yuan.
Glimpse of Brunei PMB Petrochemical Project Plant
March this year On the 31st, the China Securities Regulatory Commission issued the “Reply on Approving the Public Issuance of Convertible Corporate Bonds by Hengyi Petrochemical Co., Ltd.” to Hengyi Petrochemical Co., Ltd., approving Hengyi Petrochemical’s public issuance of convertible corporate bonds with a total face value of 2 billion yuan to the public, with a term of Six years. </p
